STRUCTURE OF EXPORT OF SERVICES IN JAN-MARCH 2021 (GRAPHICALLY)
Representative offices of international companies in Ukraine are gradually returning employees to their offices in accordance with the global policy of parent companies, Managing Director of Colliers International (Ukraine) Oleksandr Nosachenko told Interfax-Ukraine.
“Despite COVID-19, companies are not going to give up office work. In more mature markets, companies are gradually returning employees to rented premises, given the pace of vaccination,” Nosachenko said.
According to him, such international companies as Google, Apple, Amazon and Facebook are examples, which note the need for a physical presence in offices for effective teamwork, especially in the development of new projects. Ukrainian representative offices of international companies are also gradually returning employees to their offices.
In general, the office real estate market in Kyiv has become more active. According to Colliers International (Ukraine), the gross take-up of office space in the first half of 2021 amounted to about 60,000 square meters, which is 66% higher than in the first half of 2020 (some 40,000 square meters).
According to Nosachenko, the most active in terms of renting office space were companies from the IT sector, which share in the demand structure is 64% (about 40,000 square meters). FMCG (Fast Moving Consumer Goods) companies occupied about 10% (about 5,000 square meters) in the total demand structure.
During the first half of 2021, five business centers with a total area of more than 71,000 square meters were put into operation. The long-term construction at the metro station Lukianivska –LUWR business center (gross leasable area of 27,000 square meters), a business center at the metro station Taras Shevchenko (gross leasable area of 21,200 square meters), two business centers on Zoolohichna Street (gross leasable areas of 11,820 square meters; 6,000 square meters) and a business center as part of the River Mall – River Mall business center (gross leasable area of 5,000 square meters).
Thus, at the end of the first half of 2021, the cumulative supply of professional office space in Kyiv reached more than 2.218 million square meters.
“The total area of commissioned facilities is about 34.8% of the total volume of premises announced by developers for 2021,” Nosachenko said.
At the same time, during the first half of 2021, due to increased demand, there is a decrease in the average vacancy rate in business centers of A and B classes to 11.1% (at the end of 2020 it was 11.5%).
The vacancy rate in A class business centers decreased from 10.8% at the beginning of the year to 10.6%. The vacancy rate in B class buildings decreased from 11.6% to 11.3%, respectively.
Analysts from Colliers International (Ukraine) note a moderate increase in rental rates for office premises following the first half of 2021.
The prime headline rent remains at $26 per a square meter per month, as in 2020. In the first half of 2021, in the A class buildings, there was an increase in the lower limit indicator: from $18 per a square meter per month to $19 per a square meter per month. The range of rental rates in the B class buildings has changed from $11-19 per a square meter per month in 2020 to $12-20 per a square meter per month in the first half of 2021.
According to developers, in the second half of 2021, eight business centers are planned for commissioning, with a total area of about 130,000 square meters. Among them, the only one is class A – Magnett business center (the first stage of gross leasable area is 44,000 square meters).
Colliers International is a leading diversified professional services provider in commercial real estate. The company’s offices are represented in 67 countries of the world.
EMPLOYEES, INTERNATIONAL COMPANIES, RENTED PREMISES, RETURNING
President of Ukraine Volodymyr Zelensky looks forward to a substantive and productive meeting with U.S. President Joe Biden at the White House on August 30 to discuss important issues of strategic partnership between Ukraine and the United States.
“Look forward to a substantive and productive meeting with President Biden on August 30. The United States is our top strategic partner. We will have frank and vibrant discussion regarding serious security threat Nord Stream 2 poses to Ukraine, peace in Donbas, return of Crimea and the economic development challenges Ukraine faces,” Zelensky wrote on Twitter on Wednesday.
Earlier on Wednesday, the White House said that Biden will meet with his Ukrainian counterpart Zelensky in Washington on August 30.
The German authorities intend to support bilateral energy projects with Ukraine and will dedicate the funding of $70 million for this, according to a joint statement by Washington and Berlin on the Nord Stream 2.
“Germany will continue to support bilateral energy projects with Ukraine, especially in the field of renewables and energy efficiency, as well as coal transition support,” the document says.
Germany, among other things, “will appoint a special envoy with dedicated funding of $70 million.”
In addition, Germany is also ready to launch a Ukraine Resilience Package to support Ukraine’s energy security. Berlin will provide assistance for Ukraine’s integration into the European electricity grid, support efforts to reform Ukraine’s energy sector, and assist with identifying options to modernize Ukraine’s gas transmission systems.
Revenue of Metinvest B.V. (the Netherlands), the parent company of an international vertically integrated group of steel and mining companies Metinvest, in April this year increased by 12.9%, or $178 million, compared to the previous month, to $1.555 billion from $1.377 billion. According to the published preliminary unaudited consolidated monthly results of the company’s financial statements on Wednesday, total EBITDA in April was $650 million, which is $69 million, or 11.9% more than in March ($581 million). At the same time, EBITDA from participation in the joint venture amounted to $101 million (in March – $95 million).
According to the report, adjusted EBITDA of the metallurgical division of the group for April 2021 amounted to “plus” $313 million (in March – “plus” $233 million), including $34 million from participation in the joint venture ($13 million); EBITDA of the mining division – $399 million ($402 million), including from the joint venture – $66 million ($82 million). The management company spent $7 million ($7 million).
The total revenue in April consisted of the revenue of the metallurgical division in the amount of $1.189 billion (in March – $1.045 billion), and the mining division – $563 million ($513 million). Intragroup sales were $197 million ($182 million).
The total debt of Metinvest in April decreased by $101 million compared to March, to $3.172 billion from $3.273 billion, whiles cash and cash equivalents increased by $234 million, to $1.204 billion from $970 million.
Net cash used in investing activities amounted to $60 million, and in financing activities – $156 million.
Metinvest received $46 million from the resale of square billets produced by (Dniprovsky Iron and Steel Works of ISD Corporation) in April in the amount of 75,000 tonnes. In addition, $218 million were received from the resale of 272,000 tonnes of flat-rolled products, 80,000 tonnes of long products – $58 million, and 115,000 tonnes of cast iron – $70 million.
In general, the company in April sold 440,000 tonnes of semi-finished products for $277 million, 967,000 tonnes of finished metal products for $786 million, and 183,000 tonnes of coke for $58 million.
In April, the group sold 1.779 million tonnes of iron ore for $333 million, and 178,000 tonnes of coal concentrate for $22 million.
The main shareholders of Metinvest are SCM Group (71.24%) and Smart-Holding (23.76%), jointly managing the company.
Metinvest Holding LLC is the management company of Metinvest Group.
The Slovak Republic opens an entrance for Ukrainian citizens who have completed a full course of vaccination against coronavirus (COVID-19), Ukrainian Foreign Minister Dmytro Kuleba has said.
“Slovakia has opened up for Ukrainians who have completed a full course of vaccination. For those who have not yet been vaccinated, entry is possible with self-isolation,” Kuleba said on his Twitter page on Wednesday.
